Insurance For an Uncertain Future

Joe Doerr

Insurance for an Uncertain Future

Joseph T. Doerr

Impact of new technologies in the transportation

• What new technologies will have a major impact?• What potential benefits/challenges could arise?• How to incorporate these new technologies into a

management plan.

Autonomous Technology

Autonomous Vehicles (Trucks):

A vehicle that is capable of sensing its environment and navigating without human input. Autonomous trucks can detect surroundings using a variety of techniques such as radar, lidar, GPS, and computer vision.

National Highway Traffic Safety Administration (NHTSA)

American Transportation Research Institute: Identifying Autonomous Vehicle Technology Impacts on the Trucking Industry

Society of Automotive Engineers (SAE)

American Transportation Research Institute: Identifying Autonomous Vehicle Technology Impacts on the Trucking Industry

Cyber Security Concerns???

TELEMATICS

Accident Causation

Reason Trucks

Decision (Speed, Aggressive) 42%

Recognition (Inattention, Distraction) 35%

Vehicle (Brakes, Tires, Lights) 8%

Performance (Overcompensated) 7%

Environment (Roadway, Weather) 4%

Non-Performance (Sleep, Sick) 3%

Unknown 1%

Source: Large Truck Crash Causation Study, 2001-2003

Large Trucks: Driver – 87% of the Critical Reasons coded to the truck •Two-thirds are: Recognition Decision

Telematics:

It is the technology of sending, receiving, and storing information related to remote objects, such as vehicles, via telecommunication devices.

Onboard Safety Monitoring TechnologyOSM Devices integrate in-vehicle recording technology that can continuously measure and record driver performance.

Record performance Through telematics. In-Cab Camera Technology

Safety• Speeding

• hard Braking• Cornering

Fleet Management• Proactive Maintenance

• Vehicle health• Fuel Consumption

Productivity• Dispatching

• Stop Duration• Route Efficiency

Compliance• Hours of Service

• State and Federal Laws• Company policies

Telematics System

Added Value• Driver Exoneration

• Visual Aid for Coaching• Early Settlements for at-fault accidents

Camera Systems

Careful consideration is required when developing, implementing, and evaluating the SMP program. Each step of the management program is critical to its success and includes the following: Develop a positive safety culture. Assemble a steering committee. Define roles and responsibilities Polices and Procedures Benchmark risky driving. Develop performance measures. Develop an implementation timeline. Develop accountability. Develop awareness, education, and training. Implement the safety management program. Monitor and evaluate.

Safety Management Program

STEP 1: DEVELOP A POSITIVE SAFETY CULTURETop Management “Buy-in”Build Trust Encourage involvement from all. Seek feedback Demonstrate that safety is a value

STEP 2: ASSEMBLE A STEERING/SAFETY COMMITTEEThe steering committee responsibilities: • development of the program;• oversight of the program once it is implemented;• necessary support for drivers; • and the evaluation of the program once it has been

implemented.

Committee Responsibilities

Policies & Objectives

Processes & Procedures

Roles & Responsibilities

Training & Communication

Monitoring & Tracking

Meaningful Action

Develop a Safety VisionThe steering committee’s vision will guide the entire process of development, implementation, and evaluation. It is critical to

develop the vision first, and then use it in all phases of developing the OSM program.

1. YOUR ORGANIZATIONAL STATE: What does your current safety profile look like? (Loss History, CSA Scores, etc.)

2. YOUR TARGET: What Result are you committed to achieving? What is the outcome?

3. YOUR REASONS: What is your why (purpose)?

4. YOUR MAP: What is the your action plan? What are the specific actions you need to take in order to achieve these results?

STEP 3: ROLES & RESPONSIBILITIES Top Leadership

Managers Dispatcher

Drivers Administrators

STEP 4: Policies & Procedures• define the “what” and “how” of the

safety management program• Policies establish the guidelines of the

program• Procedures explain how to accomplish

those procedures

SMART GOALSObjectives should be:

Written clearly and signed by the executive accountable for the program;

Be clearly communicated to all relevant personnel in the organization;

Emphasize your commitment to effective communication and continuous improvement; and

Require regular evaluation of the program to ensure continued effectiveness.

STEP 5: DEVELOP PERFORMANCE MEASURESThe key question is, “Is the program working?” To answer this question, the steering committee needs to identify which measures will indicate success and develop accountability for risky driving.Two types of Performance Measures: Process measures: are performance-based

measures that focus on the behavior, such as rapid braking.

Outcome measures: are result-focused and emphasize the result or a goal, such as improved CSA scores or zero preventable crashes.

Process Measures (within control of the driver)Some example process measures that may be useful in the OSM program include:

Number of hard braking events; Number of rapid accelerations; Number of hard cornering events; Number of speeding events; Number of severe alerts per week; Number of coaching sessions;

Number of drivers who earned recognition; Percentage of time following mobile phone policy (if there is one); Percentage of drivers that attended safety meetings each month;

Percentage of time with a safe following distance; Percentage of driving time a safety belt was worn.

Outcome MeasuresMany of these measures are not in the full control of the driver. Outcome measures are

best used by management to evaluate the overall effectiveness of the OSM program. Number of preventable crashes;

Number of crash-free miles; Number of DOT-reportable crashes;

Number of injuries; Drivers’ perceived job satisfaction measured via a questionnaire.

STEP 6: DEVELOP AN IMPLEMENTATION TIMELINE

Start Date Milestones Completion Date

STEP 7: DEVELOP ACCOUNTABILITY

Managers Dispatcher

Drivers Administrators

STEP 8: DEVELOP AWARENESS, EDUCATION, AND TRAINING

A number of communication types can be used, including, but not limited to: Electronic communications (e.g.,

online driver training and websites); Companywide newsletters; Bulletins; Fliers; Safety seminars; One-on-one, face-to-face meetings; Group meetings.

STEP 9: IMPLEMENT THE OSM PROGRAM

Ongoing OSM Program Communication

Your continued support for the program helps sustain enthusiasm and

participation in the program. To ensure employees know you will

continuously support the program, you should maintain formal and informal

communication channels, remain active in safety-related discussions, and actively listen to and address all

program-related feedback.

STEP 10: MONITOR & EVALUATE

Summary: Autonomous technology and

Telematics will change the way we do business.

Having the proper management system in place will drastically reduce exposures created by these new technologies.